FHA mortgage approval chances with medical collections??

[DrMac210]

My wife and I are looking to obtain a FHA mortgage within the next six months (sooner if possible).

However, due to myself being self-employed with a massive student loan in an IBR plan, our loan will have to go through my wife (and her credit) solely.

Mortgage scores as of today via myfico are EQ 644, TU 647, EX 680.

Salary is around $50,000, but collects quite a bit of OT and differentials due to being a nurse.   Last two years of wages via tax returns/W-2's are $65K and $71K.

The house we will be buying is the one we are currently living in and renting from a family member at $800/mo (for the last six months). 

Mortgage will be obtained via FHA loan (local bank quotes rate at 3.75% today, although it was at 4.25% last week).  

Purchase price: 95K

Down Payment: $3325

Taxes are $2600/year

Home insurance estimated at $800/year.

PMI: $64.94

Estimated monthly payment: $780.26

Car loan payment: $520/month. 

Three credit cards: $0/mo,  $0/mo and $75/mo

The BIG issue with her file is SEVEN medical collections ranging from $70 -$1500.  Total amount due is around $3400.  

The most recent collection was filed in December 2015 due to a major surgery that occurred in 2014.

Other than the medical collections, her payment history has been perfect for the last 5+ years.

Any thoughts/suggestions are much appreciated.  Thanks!

[Anonymous]

Medical collections will not impact your ability to obtain an FHA mortgage unless those collections drop your score below the minimum score needed to qualify. If your score is where it needs to be, no need to worry about the collections disqualifying you.

[Anonymous]

youre in the clear OP..  Dont sweat it Congrats

[Anonymous]

What state are you purchasing in? If it's a community property state, your debt will be considered.